Trump's Proclamation 10925 Creates Auto Parts Tariff Offset for U.S.-Assembled Cars: 3.75% of MSRP in First Year
The White House released Proclamation 10925, "Amendments to Adjusting Imports of Automobiles and Automobile Parts Into the United States," on April 29, 2025. President Donald J. Trump modified the automobile tariff system imposed by Proclamation 10908 of March 26, 2025, creating an "import adjustment offset" for manufacturers that assemble automobiles in the United States: when they import automobile parts, they may offset their parts-tariff liability under Proclamation 10908 by an amount calculated as a percentage of the aggregate manufacturer's suggested retail price (MSRP) of the automobiles they assemble in the United States.
The offset has two tiers. For automobiles assembled in the United States from April 3, 2025, through April 30, 2026, a manufacturer may apply for an offset equal to 3.75 percent of the aggregate MSRP value; for automobiles assembled from May 1, 2026, through April 30, 2027, the rate is 2.5 percent. The proclamation states that these rates reflect the duty that would be owed when a 25 percent duty is applied to parts accounting for 15 percent of an automobile's value in the first year and 10 percent in the second. The automobile tariffs under Proclamation 10908 took effect on April 3, 2025, and the parts tariffs were set to take effect on May 3, 2025.
Eligibility and use are both bounded. Only automobiles that undergo final assembly in the United States count toward the calculation. The offset may be used only by importers of record authorized by the manufacturer, only against that manufacturer's own automobile parts tariff liability under Proclamation 10908, and any amount above that liability is capped and cannot be applied to other tariffs. A manufacturer may list suppliers in its own supply chain among the importers of record eligible to draw on its offset amount.
Procedurally, the Secretary of Commerce must establish an application process within 30 days. Manufacturers must submit documentation certifying the number of automobiles they project to assemble in the United States and the plant locations where final production will occur, their projected tariff costs broken down between costs incurred directly and through suppliers, the total offset amount requested, and the importers of record eligible to use it, together with a certification signed by a senior officer under penalty of perjury. After verifying a submission, the Secretary approves the application and notifies U.S. Customs and Border Protection, which confers the offset; importers that claim more than the approved amount may face the maximum monetary penalties permitted by law.
The proclamation says the modified system links the fee on imported parts to their use in assembling automobiles in the United States, in order to reduce reliance on foreign manufacturing more quickly, encourage companies to expand domestic production capacity and research and development, and create automotive jobs. The proclamation is a separate instrument from Executive Order 14289, signed the same day: the executive order addresses how several tariffs apply to the same article so that they no longer stack, while the proclamation grants U.S. assemblers an offset against parts tariffs. Both were issued on April 29, 2025, as adjustments to the automobile tariff program.
Related: Trump Signs Order Ending Stacking of Auto, Steel, Aluminum and Border Tariffs
(Source: The White House)
Source: The White House
Published by GSM · USA (original Chinese edition)
Photo: 图：位于密歇根州迪尔伯恩的福特鲁日工厂全景（资料图，2019年摄）。图：Antony-22，CC BY-SA 4.0，via Wikimedia Commons / Photo: Panoramic view of the Ford River Rouge plant in Dearborn, Michigan (file photo, 2019). Photo: Antony-22, CC BY-SA 4.0, via Wikimedia Commons
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- 2025-04-29Trump's Proclamation 10925 Creates Auto Parts Tariff Offset for U.S.-Assembled Cars: 3.75% of MSRP in First YearThis story
